Stark increase in cyber attack damages for German companies: KPMG

There has been a stark increase in cybercrime targeting German businesses, accountancy firm KPMG has warned. Just over one-third of companies have been attacked in the past two years, with more than half reporting escalating financial damages.

Phishing, cloud service breaches, and data leaks remain the most common types of cyber-attacks, often exploiting mail and web servers. Cybercriminals frequently target service providers' technical infrastructure to access sensitive customer, financial, and personnel data. 

This growing threat has heightened awareness among German companies, with 67% now considering cybercrime a significant risk, up from 61% in 2022.

In response to these increasing risks, cyber insurance is becoming a critical component of corporate risk management. Currently, 40% of German companies have cyber insurance, with an additional 42% considering it.

A major vulnerability identified by the study is the lack of security awareness among employees, cited by 66% of companies as a significant risk factor. To address this, three-quarters of businesses are investing in employee training to enhance their internal defenses.

The rising number of cyber-attacks aligns with global trends, where digital transformation and increased reliance on cloud services have expanded attack surfaces for cybercriminals. The German government's push for digitalization, combined with a robust industrial sector, makes it an attractive target for cyber-attacks. 

This environment underscores the importance of comprehensive cyber risk management strategies, including the adoption of cyber insurance.